sulake
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Community driven businessHabbo's social game evolution at 10 years and
going
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World’s Leading Online Hangout and Social Game for Teens
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Osma Ahvenlampi
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Social places for games, self-expression and communication
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2010
8
20052000 2002 2003 20042001 20082006 2007 2009
» 182 million registered Habbo-
characters
» 45 million hours of play / month
» 2 million visits / day› Source: Sulake Statistics, August 2010
182Million
45 Millionhours!!
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Community as a focal point
Service vs product development
Customers, extended
Metrics-driven guided business
Agility as a business enabler
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10 years of 10 years of
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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10
15
20
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35
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45
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65Revenue, million €
H1
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The secret to long life?
Continuous reinvention
TechnicalConceptual
Business focus
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Software industry under change
“software as a service”“service oriented architecture”
“lightweight clients”“zero deployment”200
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Software as a Service
• Customer PoV: less systems investments
• Web removes distribution delay.. and demands a corresponding increase in capability for change
• Competition is more immediate
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Increasing pace of innovation
“Internet speed” is getting faster
From 6 updates a year (2006) to daily live testing (today)
New version to all markets globally once a week
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Why go this fast?
Feedback loop
Early data helps shape final results
Reaction speed matters
Customers prefer the fastest rate of change they can keep up with
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Shape of change
• Continuous stream of updates– Features, functions, items– Campaigns, competitions– In-game economy improvements– Usability improvements– Gaming features
• Most content is by players– Every new trend, fad, fashion, event is reflected
– Constant reuse of stuff in new ways
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Rapid cycle and big changes
• Most changes are small, even if they sum up to big differences in the end... but not all
• We spent most of 2009 re-developing the entire technology to a completely new platform– Higher performance– Better compatibility– Wider range of supported devices– Enabling other changes
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Habbo on the social graph
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Social Play
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Free-to-play economics
• Micropayments for virtual items and VIP membership
• Advertising as a secondary revenue stream
• Player-to-player marketplace and trading means a market which follows common economic principles– Exchange volumes 10x primary sales
• Non-paying players are also valuableas community members and culturemakers
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User created game
World Cup Soccer Arena
Player-created games
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A way to reach consumers
Age of Broadcast Media is overEver-smaller, tightly focused behavioral clusters
Reaching large audiences todayrequires reaching multitude of niche
audiencesCost of get-to-market is lower
Complexity of large audiences is higher
Use of word of mouth
Context mattersRelevance is time-sensitive
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Metrics-driven innovation?If it's worth doing,
it's got to be worth measuring
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Performance measurement
• At daily updates pace, measuring change is sub-daily
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Community opinions
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Metrics can't tell you what to do
Constant performance measurement is lifeblood for recognizing both problems
and successes
But numbers aren't ideas
Great design comes from vision, skill and experience
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An agile, community focused vision
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Creativity
FriendsFun
Attention FASHION&
LOOKS
PARTIES & EVENTS
MUSIC
PLAYER CREATEDGAMES
PETS
HOBBIES
?
Osma Ahvenlampi - Verkkoteollisuus Ry - 2010-10 - Copyright Sulake
Thank [email protected] - twitter.com/osma